This is an editorial opinion piece by Niklas Kleinwortha research assistant at the Idaho Freedom Foundation, a public policy advisory organization.
As Congress seeks to refine the federal government’s stance on cryptocurrencies, one must be wary of policies that allow officials’ favoritism to favor Bitcoin. While Bitcoin itself cannot be regulated, federal control could impede progress orange stake nocoiners by making bitcoins less practical to access and exchange. Bitcoin miners should support legislation that both simplifies the industry’s relationship with the US government and provides protections against excessive bureaucratic access.
Senators Cynthia Lummis and Kirsten Gillibrand’s Cryptocurrency Law is a tall predict in advance and is an industry milestone in recognizing bitcoin’s role in the US economy and providing a regulatory framework for many of the gray areas that have hindered government interactions with the bitcoin business. Of these, receipt will designate the Commodity Futures Trading Commission (CFTC) as the governing body on crypto matters, define bitcoin as a commodity rather than a security, and improve market transparency. market for stablecoins. This approach can lead to more innovation and more bitcoin adoption as it is applied to everyday transactions.
Despite the bill’s merits, Bitcoiners should be skeptical of this new policy direction in Washington, DC, as the regulatory framework does not restrict administrative agencies rather than the edges of a blank canvas for a painting. doctor. Invoice Lummis-Gillibrand Offer the creation of this framework fails to provide any protection against the very entity that is threatened by Bitcoin’s decentralized character and made obsolete: the federal government. By imposing a regulatory framework without implementing safeguards against excessive bureaucratic access, the industry will not be any safer after this bill is passed as it is today. In fact, one could argue that the industry would be less secure as officials would be allowed to focus regulatory efforts on the industry rather than jostling for control of each other.
Although Senator Lumis has discussion passed crypto law a while back, the recent push to pass it seems to be driven by investors escape to the government for the rescue after the liquidation crisis of the past few months. Supporters of more regulation are not everyday HODLers who believe in the principles of decentralized wealth and financial freedom. Instead, they are modern day gold miners trying to leverage get-rich-quick altcoin funds to expand their wealth in fiat. However, their calls for regulation are presented as a consensus from the crypto industry, which casually sweeps Bitcoiners into the new regulatory landscape even though they are not involved in the crisis.
In Bitcoin’s truly trustworthy financial accountability system, there’s no need for regulation. Therefore, there is really no need to regulate the rest of the crypto market. Consumers hate nothing more than being scammed. As altcoins come and go, it’s clear that bitcoin has staying power and investors will eventually stop supporting decentralized, unstable, and fake coins. If there’s anything we’ve learned over the past two months, it’s that Bitcoin is the model for liberal capitalism operating in a self-regulating system.
It is dangerous to look to government as a last resort to the problems that exist in the free market. Especially when problems arise due to poor durability of the product in response to bad market management by the regulatory agencies themselves.
The problem with additional regulation for crypto exchanges is that the government will gain more consistent control over the market and restrict financial freedom. This effect is particularly strong as bitcoin integrates with the market by becoming a payment option for ordinary consumers. Businesses, not bitcoin, will be the target because few of them are willing to risk the consequences to defy government overreach.
Bitcoin was designed to be an escape from the federal government’s mismanagement of the market. Present, historic Inflation is making ordinary activities like driving to work and eating three square meals a day practically expensive. Meanwhile, the Federal Reserve is near dangerous levels Overrepair situation, threatens to plunge the economy into a recession comparable to what we experienced in 2008. Given this record, it would be unwise to hand the current managers of the economy to economy any control over people’s access to their only means of escape.
While the Lummis-Gillibrand bill is an initial step towards clarifying the law and recognizing bitcoin as a viable store of value, provisions are needed to protect the industry from the regulators themselves. Protects should be in place that recognize your ownership and holding of bitcoins, limit what law enforcement agencies have when it comes to explaining their role in the regulatory framework, and recognize one’s financial privacy. who is guaranteed by the Fourth Amendment of the United States Constitution. Regulating regulators would limit undue access and support financial and asset privacy rights in their fullest form.
One should keep in mind that bitcoin is not intended to be a conventional investment, but rather a movement built on the principle that financial freedom should be accessible to all and unfettered by any government. , company, group or individual that manipulates the market. Voluntary investors calling for this right to be restricted are holding bitcoins for the wrong reasons and completely miss the point of this grand experiment.
Bitcoins don’t just have to HODL their bitcoin on the basis that they believe it is a superior store of value. They must also apply this principle to the realm of public policy: “Political HODLing” on the basis of bitcoin does not require regulation as a superior trustless system. It is important to both support public policies that clarify the law, encourage innovation and open markets, and oppose policies that create opportunities for officials to regulate at will. Without this political vigilance, Bitcoiners risk losing the cultural war between the Fed and true financial freedom.
This is a guest post Niklas Kleinworth. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.